Live and feeder contracts should open with mixed prices Monday, higher in nearby issues and lower in deferreds. Lean hog issues should also begin with uneven action, torn between firming cash and lackluster carcass value.
Cattle: Steady-$2 HR Futures: Mixed Live Equiv: $140.35 + .68*
Hogs: Steady Futures: Mixed Lean Equiv: $ 72.80 – .50**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Feedlot country should be typically quiet as players focus on the standard early-week chore of showlist distribution. We expect ready numbers offered to be steady to larger. Not much will be said in terms of preliminary asking prices, but it’s a good bet that most producers will be thinking at least $2 higher on a live basis, based on last week’s successful round of business.
Live and feeder futures should trade mixed in the early rounds with nearbys supported by the rise of packer bids in recent weeks and deferreds somewhat pressured thanks to the supply-heavy implications of the April 1 Cattle on Feed report.